LO.4 The profit and loss statement of Kitsch Ltd., an S corporation, shows $100,000 book income. Kitsch
Question:
LO.4 The profit and loss statement of Kitsch Ltd., an S corporation, shows $100,000 book income. Kitsch is owned equally by four shareholders. From supple- mental data, you obtain the following information about items that are included in book income. Selling expenses ($21,200) Tax-exempt interest income 3,000 Dividends received 9,000 51231 gain 7,000 Depreciation recapture income 11,000 Net income from passive real estate rentals 5,000 Long-term capital loss (6,000) Salary paid to owners (each) (12,000) (91,000) Cost of goods sold
a. Compute Kitsch's nonseparately stated income or loss for the tax year.
b. What would be the share of this year's nonseparately stated income or loss items for James Billings, one of the Kitsch shareholders?
Step by Step Answer:
Essentials Of Taxation Individuals And Business Entities 2019
ISBN: 9780357233290
1st Edition
Authors: William A Raabe, James C Young